Question
HOW DO I REPORT RACE HORSE SALES LESS THAN 2 YEARS FOR SELF EMPLOYMENT TAX IN PROSERIES?.
I have a schedule C client who buys race horses. We report the bonus depreciation and or section 179. The client races the horses and sells some of them. Some purchase and sales occur in the same year while others are sales of horses purchased in prior years. I've been reporting the sales on schedule 4797 which taxes it as ordinary income. But it should also be used for the SE and 401k limit calculations. Is there a way to have Proseries automatically report those amounts on the SE schedule? Can I add the profit or loss to the SE worksheet part II line 6? Or another way I should be reporting these?
